Bermuda – Selling Property

What is the Procedure for Selling a Property Yourself in Bermuda?

Selling a property privately in Bermuda — commonly referred to as For Sale By Owner (FSBO) — is entirely possible, and doing so allows you to avoid paying the seller’s agent commission. However, the legal and administrative steps involved remain the same whether you use an agent or not, and engaging a qualified Bermuda attorney is not optional — it is essential to ensure the transaction is valid.

Real estate brokers and sales associates in Bermuda are licensed annually by the Bermuda Government Registrar of Companies, and by law, each company must submit an annual audit. This means that while you can sell without engaging a licensed broker, you cannot bypass Bermuda’s legal framework. Because Bermuda has no title insurance, it is incumbent upon the purchaser to confirm that the property title is in order, and the assistance of an experienced local lawyer is essential in navigating the real estate rules and ensuring you will acquire good title to a property.

Property transactions in Bermuda are generally conducted in an old-school manner, involving wet ink signatures and overseas notaries, and the level of AML (anti-money laundering) monitoring for real estate is very high. Sellers should be prepared for a formal, documentation-heavy process regardless of whether they choose to work with an agent.

The following outlines the step-by-step procedure for a private property sale in Bermuda:

1. Set your asking price and prepare the property. Research comparable sales in your area to determine a realistic market value. Buyers will research recent sales of comparable properties in the area to ascertain the fair market value of the home, so pricing accurately from the outset is essential when selling privately without professional guidance.
2. Market the property. If you elect to sell your property yourself, you may prefer a For Sale By Owner (FSBO) solution, which gives you the tools to create a full-featured listing on specialist websites with photographs, text, facts, features, maps, floor plans, and more. Platforms of this type automatically notify lists of buyers when the property is activated and send all inquiries directly to your private account.
3. Negotiate with prospective buyers. Flexibility is key during negotiations, as the buyer and seller may exchange counteroffers until reaching a compromise. Once a price is agreed, both parties proceed to the formal offer and acceptance stage.
4. Engage a Bermuda attorney. Both the buyer and seller must appoint their own legal representatives. Each party is responsible to his or her own attorney and not to the attorney of the other for the cost of any legal services provided in relation to the transaction, such as preparation and/or review of the Sale and Purchase Agreement, negotiations, and other services.
5. Draft the Sale and Purchase Agreement. The Sale and Purchase Agreement is the binding legal document that sets the terms of the property transaction. The seller is normally responsible for the cost of the initial draft of the Sale & Purchase Agreement, at approximately $500.
6. Collect the deposit. A deposit of 10% of the purchase price is payable upon signing the Sale and Purchase Agreements. The deposit is held in escrow by the agent or attorney until closing. When selling privately, your attorney will typically hold this deposit in their client account.
7. Conduct title searches and surveys. Conducting a thorough title search is a vital part of the property transaction. It verifies that the seller has clear and undisputed ownership of the property and that there are no existing liens, boundary disputes, or legal encumbrances that could affect ownership rights. The seller typically assumes the cost of staking the boundaries; the purchaser typically assumes the cost of any structural survey.
8. Pay stamp duty and conveyance fees. The seller is responsible for 50% of the conveyance fees and stamp duties. The purchaser is responsible for the other 50% of the conveyance fees and stamp duties. Conveyance fees are calculated on a sliding scale set by the Bermuda Bar Association.
9. Complete the transaction and register the deed. On the closing day, both parties sign the necessary documentation, and the remaining balance of the purchase price is transferred to the seller. Ownership of the property is officially transferred once the deed is registered with Bermuda’s Land Title Registry Office.

Bermuda’s electronic Land Title Registry Office (LTRO) became operational in August 2018 but does not yet capture all real estate, as only certain transactions trigger compulsory first registration. Other transactions may be registered in the Office of the Registrar-General, which is also now maintained by the LTRO, but are recorded by reference to the parties’ names.

If your buyer is a non-Bermudian, additional requirements apply. All non-Bermudians require a licence issued by the Bermuda Government before they are granted permission to buy a property. The application, which must relate to a specific property, generally takes between six and eight weeks to approve. As the seller, you should factor this timeline into your expected completion date. The overall purchase process typically takes around 2–3 months, including the time for property search, negotiation, legal procedures, and closing.

One important restriction applies to non-Bermudian sellers: in general, non-Bermudians will not be allowed to sub-divide land and will be required to sell the property as a whole single unit. This significantly limits flexibility when disposing of larger properties or estates.

Is There Capital Gains Tax on Property in Bermuda?

For property sellers, Bermuda’s tax environment is strikingly straightforward: there is simply no capital gains tax. This sets Bermuda apart from most other jurisdictions where selling a property at a profit would trigger a significant tax liability — for example, in France the standard CGT rate on property gains can reach 36.2% including social charges, and in Germany it stands at up to 25% if the property has been held for fewer than ten years.

There are no income or capital gains taxes in Bermuda for individuals. This applies to all property owners, regardless of nationality or residency status. Taxation of investment income and capital gains is not applicable in Bermuda. Specifically for residential property: principal residence gains and losses are not taxed.

There is no personal income tax, capital gains tax, inheritance tax, death tax, gift tax, or wealth tax payable in Bermuda. According to a 2024 analysis published on Mondaq, there are no plans to introduce any of these taxes in Bermuda and no sentiment along those lines has emerged from government. This provides sellers with a high degree of certainty when planning a disposal.

With the exception of the Payroll Tax, there is no income tax, capital gains tax, or withholding tax in Bermuda. The KPMG Taxation of International Executives guide (February 2026) confirms that capital gain on the disposition of shares — and by extension property — is not taxed in Bermuda.

While there is no CGT, sellers should not confuse this with a completely tax-free transaction. Stamp duty does apply to property transfers and is payable by both buyer and seller. Stamp duty in Bermuda is applicable on legal instruments such as property deeds, affidavit of property, agreements, bonds, and similar documents, and the rate of stamp duty varies for various instruments. Stamp duties are calculated on the property purchase price based on a sliding scale set by the Bermuda Government, and are shared equally by seller and purchaser in a gross transaction. The Government of Bermuda website provides the current stamp duty rate schedule, which should be checked for the most up-to-date figures at the time of your sale.

In addition to stamp duty and payroll tax, land tax is charged to individuals owning land or renting for a period in excess of three years. Land taxes are payable in twice-yearly instalments and are based on the annual rental value (ARV) of the property as determined by the Government Land Valuation Department, at rates from 0.8% of ARV for properties below $11,000 ARV to 55% of ARV for properties over $120,001 ARV. This is an ongoing ownership cost that ceases once the sale completes and legal ownership transfers to the buyer.

It is also worth noting that, while Bermuda imposes no CGT domestically, sellers who are tax residents of another country may still be liable to declare and pay CGT in their home jurisdiction on gains arising from the Bermuda sale. Always seek independent tax advice in your country of fiscal residence before completing a sale.

How Easy Is It to Sell Your Property Yourself in Bermuda?

Selling privately in Bermuda is possible, but it comes with real complexity. Unlike markets where FSBO (For Sale By Owner) is commonplace and well-supported by online platforms — such as the United States, where platforms like Zillow give sellers broad national reach — Bermuda’s property market is small, highly regulated, and relationship-driven. This makes the role of professional guidance harder to replicate independently.

Bermuda has one of the world’s most tightly regulated real estate markets, and understanding the legal steps involved is crucial. According to the Bermuda Government, only about 5% of the island’s residential properties are available for non-Bermudians. This severely restricts the potential buyer pool for many properties, which means marketing to the right audience becomes even more important when selling without an agent.

The financial motivation for going FSBO is clear. Sales commission is standard and calculated as 5% of the property price. In a gross transaction, it is payable by the seller. The Real Estate Division of the Bermuda Chamber of Commerce establishes the guidelines for agent’s commission, which are published in its Real Estate Handbook. On a property worth $2 million — typical of what is available to non-Bermudian purchasers — this commission saving alone could amount to $100,000.

However, the challenges of selling privately in Bermuda are significant. Buying real estate can be a complicated procedure, especially in Bermuda, where different rules apply for Bermudian and non-Bermudian purchasers and for different types of residential property. As a private seller, you must be well-versed in which categories of buyer are eligible to purchase your property, what licences they may need, and how long those processes take.

You will also need to manage the legal process carefully. Failure to adhere to the proper licensing procedures can lead to fines, the nullification of the property sale, or other legal consequences. Even without an agent, a Bermuda-qualified attorney is non-negotiable — they will handle the conveyancing, ensure the sale agreement meets legal requirements, and manage the escrow of the deposit. You cannot cut this cost in the way you would the commission.

One practical advantage is that online FSBO listings are available in Bermuda. When selling yourself, you do the selling and you earn the equivalent of the sales commission. Specialist local property websites allow private sellers to list their homes with photographs, descriptions, floor plans, and direct buyer inquiries — giving reasonable market exposure within the island’s small but active buyer community.

In summary, FSBO in Bermuda suits sellers who already have a potential buyer identified, who have prior experience of Bermuda conveyancing, or who are Bermudian and therefore not navigating the additional restrictions that apply to non-Bermudian owners. For those less familiar with the process, the risks of misstep may outweigh the commission savings, and a hybrid approach — using a local attorney but no agent — may offer a middle ground.

Is Property Exchange Popular in Bermuda?

Property exchange — where two owners agree to swap their respective properties directly, either with or without a cash adjustment — is not an established or widely practised route in Bermuda’s real estate market. Unlike some larger markets, there is no dedicated infrastructure, legal framework, or specialist service promoting property exchange on the island.

The practical reasons for this are closely tied to Bermuda’s unique property restrictions. Bermuda is a small country with a limited supply of housing stock. To preserve the majority of housing and undeveloped residential land for Bermudian ownership, the Bermuda Government puts restrictions on which properties are available for purchase by foreigners. These restrictions make it extremely unlikely that two parties — particularly if one or both are non-Bermudians — could find matching properties that each is legally permitted to acquire from the other.

Non-Bermudians may only purchase property valued above a set minimum Annual Rental Value (ARV). The minimum ARV for houses is $126,000 and $25,800 for condominiums. In practice, houses with a qualifying ARV start at approximately $2,500,000 and condominiums at approximately $320,000, meaning that only the highest-valued properties are available to non-Bermudian purchasers. This narrows the pool of exchangeable properties dramatically, making a like-for-like swap between two non-Bermudian owners essentially impractical.

A non-Bermudian is permitted to own up to two properties, and a non-Bermudian is not permitted to acquire vacant land. Any exchange arrangement would still require each party to go through the full licensing and conveyancing process as if it were a conventional arms-length sale — meaning two separate licence applications, two sets of legal fees, two stamp duty calculations, and two full title searches. The administrative burden makes the arrangement no simpler than simply selling and buying separately.

The stamp duty applicable to the purchase of a residential property is the same for all purchasers regardless of domicile, residence, or nationality, which means there is no stamp duty incentive for exchanging rather than selling conventionally. Each leg of a property swap would attract its own stamp duty liability calculated on its respective purchase price, making the tax treatment identical to two independent transactions.

There is also a structural challenge: Bermuda’s conveyancing process, which is generally conducted in an old-school manner, involving wet ink signatures and overseas notaries, is not designed with simultaneous or linked transactions in mind. Coordinating two interdependent closings within this framework would require careful legal management and strong co-operation between two sets of legal teams — adding cost and risk compared to a straightforward sale.

For these reasons, property exchange in Bermuda remains essentially theoretical rather than practical. Sellers looking to move within the island’s housing market are strongly advised to follow the conventional sale and purchase route, with the support of a Bermuda-qualified attorney and, where appropriate, a licensed real estate agent familiar with the local market.

Frequently Asked Questions

Do I need a lawyer to sell my property in Bermuda?

Yes. Regardless of whether you use an estate agent, engaging a Bermuda-qualified attorney is essential. Your lawyer will draft or review the Sale and Purchase Agreement, handle escrow of the deposit, carry out title searches, prepare the deed of conveyance, and manage registration with the Land Title Registry Office. You cannot legally complete a property sale in Bermuda without proper legal representation.

Will I pay capital gains tax when I sell my Bermuda property?

There is no capital gains tax in Bermuda. This applies to all sellers, whether Bermudian or non-Bermudian, and regardless of how much profit is made on the sale. However, if you are a tax resident of another country, you may be required to declare the gain in that jurisdiction. Always seek tax advice in your country of residence before completing a sale.

How much does stamp duty cost when selling property in Bermuda?

Stamp duties are calculated on the property purchase price based on a sliding scale set by the Bermuda Government, and are shared equally by the seller and purchaser in a gross transaction. The exact rate depends on the purchase price band. Check the Government of Bermuda website for the current stamp duty rate schedule, as these figures are subject to change.

Can I list my Bermuda property online if I am selling privately?

If you elect to sell your property yourself, you may prefer a For Sale By Owner (FSBO) solution, which gives you the tools to create a full-featured listing with photographs, text, facts, features, maps, floor plans, and more. Local property platforms in Bermuda allow private sellers to reach buyers directly, though the market is small and specialist.

How long does it take to sell a property in Bermuda?

The timeline for a property transaction in Bermuda can vary depending on the specific circumstances, but on average it takes around 2–3 months, including the time for property search, negotiation, legal procedures, and closing. If your buyer is a non-Bermudian, factor in an additional six to eight weeks for the government licence application to be processed.

Are there any restrictions on selling my Bermuda property if I am not Bermudian?

In general, non-Bermudians will not be allowed to sub-divide land and will be required to sell the property as a whole single unit. You are also limited to owning a maximum of two properties, and any sale must comply with the same ARV thresholds and licensing requirements that governed the original purchase. Always seek legal advice specific to your ownership status before listing.

Is land tax still payable while I am trying to sell my property?

All homeowners and long-term tenants are required to pay Land Tax twice yearly. Land Tax is due twice a year in March and September, on the specified date in the demand note issued by the Tax Commissioner. You remain liable for land tax until the property sale legally completes and ownership is transferred to the buyer.

Is there a first-time buyer stamp duty exemption that could affect my sale?

If a buyer is Bermudian or a Bermudian with a non-Bermudian spouse, is a first-time buyer, and is purchasing a property for $750,000 or under, the Government has provided a stamp duty exemption on the conveyance of the property, which may save the buyer as much as $12,000. This exemption applies to the buyer, not the seller, but knowing about it can help you attract and support eligible buyers when marketing your property privately.